1. D1 evaluate the advantages and disadvantages of using external recruitment sources compared to
internal recruitment sources
Difference between the Internal & External Recruitment Strategies
Recruiting employees can be a somewhat precarious process. With the exorbitant cost of hiring and
training an employee with job and soft skills matching the job description, making a mistake in this
arena can substantially harm net profit for the entire year. One major consideration in recruitment is
whether to hire externally or promote from within your organization. There are advantages to either
method of filling openings.
Internal Recruitment
An internal recruitment strategy is characterized by promoting employees from within an
organization to fill upcoming positions. Many firms use such devices as job posting boards, email
flashes, intranet posts and fliers to advise existing employees of positions they may vie for. This
recruitment may be in the form of creating and shuffling temporary teams to fill certain tasks or may
be permanent changes. Internal recruitment may be primarily horizontal or it may be for promotions
in which the promoted employee's former position may not be filled.
External Recruitment
An external recruitment strategy is one which a human resources department will systematically
search the employee pool outside its own employees to fill positions. Many firms will use
advertisements in newspapers, job search websites, job fairs and referrals from current employees
to fill positions. Some companies will utilize a temporary employee agency to fill positions that can
be completed quickly and with less company-specific skill required to complete the desired task.
Other firms will use headhunters or hiring consultants to seek, screen and deliver employees for a
fee.
Advantages of Internal Recruitment
Internal recruitment has some natural advantages. You do not have to "reinvent the wheel" with an
internal recruit. He will likely understand your business model, your culture and your processes
before assuming the new position. The resulting outcome is that he will assimilate into the new
position faster than a new employee who will need to be trained on the many formalities of your
firm from benefits to where your fire exits are before he can begin job-specific training. These
employees take longer to find, longer to train, more money to prepare for the job and may not fully
integrate into your culture after all of the training process. Often, the opportunity to advance
provides a strong motivation in a firm that employs a strong internal recruitment strategy.
Advantages of External Recruitment
External recruitment also has some substantial advantages. Unlike internal recruits, you are getting
an inflow of often completely new ideas with an employee who has not been exposed or
overexposed to your corporate culture. An outside prospect often yields new ideas. She may bring
information or methodologies from her former employer that can be integrated into your best
practices. Internal job pools may cause problems with a larger company's diversity mix, and lead to
problems with the Equal Employment Opportunity Commission in terms of promoting a diverse
workplace. External job recruiting allows for rebalancing in this realm if needed. External recruiting
may lead to team stability, as teams may remain intact when hiring externally
2. Disadvantages of Recruiting Internally
Can produce organizational inbreeding; candidates may have a limited perspective
Places heavy burden on training and development
May cause political infighting for promotions
Disadvantages of Recruiting Externally
May result in misplacements
Increases recruitment costs
May cause morale problems for internal candidates
Requires longer orientation or adjustment time
